SEC seeks risk-based rules to deepen capital market

By Peter Egwuatu

The Securities and Exchange Commission, SEC, has launched a risk-based management rule in the Nigerian capital market.

The Commission has also instructed the Risk Management Association of Nigeria, RIMAN, to provide its experience on its rules for managing exposed risks which would help deepen the capital market.

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Therefore, the Commission has expressed its readiness to collaborate with the association in its quest to make more products available on the capital market as well as to deepen the market.

SEC Chief Executive Officer Lamido Yuguda said so in a goodwill message at RIMAN’s 20th International Conference held virtually.

Yuguda said that from the outbreak of the pandemic until the lockdown that followed, the Commission had worked with capital market operators and other industry stakeholders to ensure that the market suffered minimal destruction. We have supported and acquired the emergence of various technological innovations around operations and market products, some of which include Fintech, digital assets and crowdfunding.

He said, “To support this, we have developed a regulatory framework to galvanize these activities while focusing on managing the risk inherent in products and activities in accordance with our mandate of market development and investor protection.

“By supporting this innovation, we hope to build a better market, attract more investors and reduce the demographics of the middle age who are currently investing in our market. We also hope to include millions of people excluded from the capital market by facilitating their access.

“To achieve this, it is necessary to collaborate with an organization like yours and we hereby invite you to contribute in any way possible to the construction of the Nigerian capital market. We invite you to do more to strengthen the risk management capacity in the capital market, to conduct studies on the processes and products of the risk capital market and to bring your opinions and recommendations to our exposed rules.